1. EIGHTH REGIONAL PUBLIC PROCUREMENT FORUM TIRANA, ALBANIA, MAY 22 - 25, 2012
E-procurement: Developing a Legal Framework that Maximizes its Advantages
Caroline Nicholas
UNCITRAL
April 2012

2. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Background:
1994 (first Model Law, GPA): EDI in its infancy
Today: some systems entirely electronic
EU 50% e-procurement (goal)
A big deal: procurement = 10-20% GDP
Online trade worldwide $12.8 trillion (2006, Forrester)
What is its potential?

3. E-procurement: Developing a Legal Framework that Maximizes its Advantages
“[e-procurement] is emerging worldwide with the potential to reform processes, improve market access, and promote integrity in public procurement” (Schapper, 2008)
Is e-procurement living up to these expectations?

4. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Key policy goals in introducing e-procurement (1)
better
Transparency
Participation and competition
Objectivity and accountability
Efficiency
Potential for better value for money

5. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Key Policy goals in introducing e-procurement : (2)
better
Oversight (external and internal)
Measurement of performance/results
Identification of risk areas (red flags)
Potential for enhanced accountability and integrity – longer-term goal

6. E-procurement: Developing a Legal Framework that Maximizes its Advantages
UNCITRAL Model Law e-procurement tools:
e-advertising
e-communications
e-reverse auctions
Framework agreements
e-tenders
e-signatures
e-records

7. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Policy approach of UNCITRAL
Encourage e-procurement
Where appropriate (infrastructure)
Safeguards and public confidence
Main policy issues
Staged implementation and where to start
Don’t over-regulate
Business models
International market access
Treat as a reform issue, not a technology issue

8. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Staged implementation and where to start
Simple tools
E-advertising, e-communications
Uploading and downloading documents
Communications during the procurement process
Second-stage tools
E-reverse auctions
Framework agreements

9. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Simple tools – e-advertising and e-communications
Legal standards for e-communications, e-advertising, e-tendering, meetings
Public confidence and safeguards – authenticity, integrity, confidentiality
Safeguarding market access
Functional equivalence/Technological neutrality
i.e. put all communications on a par
Don’t describe technology

10. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Second-stage tools: e-reverse auctions (e-catalogues, framework agreements)
Competitive market
Common/simple procurement
Goods, construction and services
Price-only procurement Strict transparency rules
Overheads for both parties in early stages
Refinements: quality criteria, auctions as a phase

11. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Don’t over-regulate
Avoid higher standards for e-procurement
e-signatures
UNCITRAL does not require advanced signatures
EU recommends them
e-tendering requirements
Equivalent to previous requirements for paper tenders
MDBs e-tendering requirements

12. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Business model
Proprietary systems/specialist software
Restrict access?
Charges
Outsourcing
Organisational conflicts of interest

13. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Longer-term goals: e-procurement as reform issue
Redesigning the procurement system
Integrated from planning to payment and evaluation
Not a technological issue alone
Costs of investment in new system
System to fit needs
Select your tools
Staged approach

14. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Longer-term goals: e-procurement as reform issue
Enhancing value for money
“Toolbox” approach to procurement
Involves discretionary decisions
Guidance and oversight – ensuring objectivity
E-records

15. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Longer-term goals: e-procurement as reform issue
Enhancing efficiency
Reduced transaction costs and times
Standardisation of purchases
Better management information
Better processes
Better supplier knowledge

16. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Longer-term goals: e-procurement as reform issue
Enhancing governance
Removal of human interaction
“Internal” transparency
Enhancing accountability
Traceability
E-records - monitoring trends, red flags

17. E-procurement: Developing a Legal Framework that Maximizes its Advantages
Conclusions
UNCITRAL has a facilitative approach to e-procurement
With safeguards
Recognises the value of process reform when implementing e-procurement

18. E-procurement: Developing a Legal Framework that Maximizes its Advantages
For more information
Website:
groups/1Procurement.html
roups/1Procurement.html
Contact:
THANK YOU